Skip to content

Wall Street Closes Lower Amid Recession Concerns and Weak Economic Data

Wall Street ended lower on Tuesday as weak economic data fueled concerns that the Federal Reserve's efforts to curb high inflation could lead to a significant economic downturn.

Wall Street
Wall Street

US Job Openings Hit Two-Year Low

All three major indexes dropped following the release of data indicating that US job openings in February reached their lowest point in nearly two years. This suggests a cooling labor market, with factory orders falling for a second consecutive month.

Manufacturing Activity Weakening

Data from Monday also pointed to a decline in US manufacturing activity, further contributing to the market's unease.

Slow Hiring Raises Concerns

Sal Bruno, Chief Investment Officer at IndexIQ in New York, stated that the decrease in job openings had caused concerns about slow hiring, which could negatively impact the economy and fuel recession fears.

Bank Stocks Suffer from Ongoing Crisis

Bank stocks took a hit after JPMorgan Chase & Co CEO Jaime Dimon warned in a letter to shareholders that the US banking crisis would continue to affect the industry for years. Bank of America and Wells Fargo & Co dropped 2%, while the S&P 500 banks index fell 1.9%.

Industrials and Energy Lead to Decline

Seven of the 11 S&P 500 sector indexes declined, with industrials and energy suffering the most significant losses, down 2.25% and 1.72%, respectively.

Major Indexes Close Lower

The S&P 500 dropped 0.58% to 4,100.68 points, the Nasdaq fell 0.52% to 12,126.33 points, and the Dow Jones Industrial Average declined 0.59% to 33,403.04 points.

Caterpillar and Nvidia Weigh on Market

Caterpillar Inc, an industrial sector bellwether, fell 5.4%. Chipmaker Nvidia also experienced a 1.8% loss, contributing heavily to the S&P 500's decline.

Healthcare and Utilities Gain Amid Slowdown

Healthcare and utilities, sectors expected to perform better during an economic slowdown, were among the few S&P 500 sector indexes to see gains on Tuesday.